March 12, 2003
Thank you, Bill and Tami, and members of AMCHAM's Board of Governors, for inviting me here today. As Honorary AMCHAM President I am delighted to be able to once again address this distinguished gathering of AMCHAM. I understand we have representatives from the EU and other multinational businesses, and I'm pleased to acknowledge them, as well as some of my good colleagues from the diplomatic community.
I take my role as Honorary President of AMCHAM very seriously, just as I
take seriously the important task of expanding trade and investment
opportunities in Korea. In that context, my relationship with AMCHAM and the
business community is one of the most important components of my job.
But I have a number of things on my plate, including helping to manage a very
complex relationship between the U.S. and Korea, about which I'd like to say a
few things today. But before I do so, let me say a few words about Korea's economy, the threat North Korea poses to South Korean prosperity and regional stability, and
U.S.-Korea security and commercial ties.
The Republic of Korea, through a fortunate combination of economic and policy factors, and the hard work, dedication, and determination of its people, has transformed itself in a remarkably short period of time into a thriving democracy, with a successful economy and a high standard of living. As friends of Korea, we Americans greatly welcome and admire that success. Korea is a dynamic and fast-changing society, which, as it continues on the path of economic reform and opening -- and it must continue because there is still work to done -- could make it into the ranks of the world's most advanced economies in the not-too-distant future.
Korea's economic development, and its transition to democracy, have been facilitated by the long-standing defensive alliance between Korea and the U.S. Like all long-term relationships, ours has had its share of ups and downs, and like all healthy relationships, it is constantly evolving. But let's be clear, the United States' commitment to help defend Korea remains a vital factor in regional security. That commitment still stands.
Korea's economy has long since diversified away from low-cost, low-quality goods into the production of modern and increasingly sophisticated information technology and high-tech products. Korea's greatest asset is its people--their work ethic, their dynamism, the importance they place on education, and the unique way they combine individual effort with consensus and cooperation.
In tragic contrast to the hustle and bustle of the Republic of Korea, North Korea lies dark and nearly dormant, most of its people numb with hunger and cold. They seem to be sustained only by an irrational fear of the United States, and an equally irrational adulation of their own leadership, both of which they have been taught for decades in complete isolation from the rest of the world. Clearly, the suffering people of the North are the unfortunate victims of a state with sadly misguided priorities.
One of those misguided priorities has prompted the North Korean leadership to embark on a dangerous path, seeking to develop both nuclear weapons and the means to deliver them to distant lands. These actions challenge the security and stability not only of South Korea and the region, but also the world, and also defy the international system of non-proliferation designed to limit the spread of these deadly weapons.
Because other nations have much to lose from North Korea's dangerous actions, the challenge to regional and global peace and stability concerns us all, and must be met by a combination of concerned states. That's why the United States has emphasized the need for a multilateral approach to resolving this issue.
Recent events such as the restart of the Yongbyon nuclear reactor and the interception of a U.S. reconnaissance aircraft patrolling international airspace by North Korea lend even greater urgency to finding an effective approach to dealing with the North's worrisome behavior.
We continue to consult with Korea's neighbors, Japan, Russia, and China, who all agree that the presence of nuclear weapons anywhere on the Peninsula is unacceptable.
The Board of Governors of the International Atomic Energy Agency has referred its concerns about North Korea to the United Nations Security Council.
Unmistakably, the international community agrees that North Korea cannot simply walk away from the solemn obligations it has undertaken, nor can it demand or expect any reward for ceasing to do what it should never have begun. For the United States and the international community, North Korea represents a clear proliferation threat, not only because of it's own development of weapons of mass destruction, but also because of the possibility that it could sell or give such weapons to terrorist enemies of the international community.
During Secretary of State Powell's recent visit to Korea to attend President Roh's inauguration, the U.S. and Korea reaffirmed our alliance's importance and vitality. Our two countries agreed to address North Korea's nuclear development programs and its proliferation of missiles. Secretary Powell also stated that the United States has no intention of invading North Korea, and that the U.S. would continue to provide food aid to the people of the North through the UN World Food Program.
As we explore ways to resolve the challenge posed by North Korea, we are mindful that it is the Republic of Korea that bears the brunt of Pyongyang's threat and which would have the most to lose if war were to break out again on the Peninsula. That's why we all agree that this issue can and should be resolved peacefully and through diplomacy, even as prudence demands that we keep all our options open.
As Korea's new President settles into office, let me assure you that the U.S. commitment to defend the security of Korea remains as strong as ever. Of course, our partnership should be as dynamic as the times in which we live. Americans, like Koreans, want a mature and balanced relationship between our two countries - a relationship that meets the needs of the 21st Century and reflects the contributions that each of us can bring to the table in this new era. I believe that we already have a mature relationship with Korea. However, we all continue to hear concerns from our Korean friends - concerns that are often abstract and inchoate - about the fairness and equality of our relationship. Accordingly, one of my current goals is to seek to elicit a clearer picture of these concerns and address them as best we can.
Earlier I mentioned that our bilateral relationship is constantly evolving. Let me give you an example. Last December, our two defense ministers agreed to conduct a joint study on the new challenges and opportunities that our military alliance will face in this new century. One of these challenges is the changing environment, including increasing urbanization, in which our forces here operate. This has prompted us to explore how best to reduce our base footprint and rationalize our base presence. To do so, we are implementing a Land Partnership Plan, which will return to the Korean government almost half the land that our bases now occupy. Together with the South Korean government, we are also looking at alternative locations for our base in Yongsan.
But let's remember that our alliance is a multifaceted one which goes beyond
the defense of the Republic of Korea. As time goes by, our alliance can and
should encompass the promotion and maintenance of regional security as a
steadily more important aspect of our ties.
Our relationship also goes beyond the military dimension. Korea and the United
States have a close and vital economic relationship. A strong, vibrant Korean
economy is important to U.S. interests, just as an expanding U.S. economy and
an open U.S. market are important to Korea.
Both our nations have a common appreciation of the benefits of free trade. Korea has become an economic powerhouse, and Koreans - like Americans, Europeans and other members of the global trade community - understand why open markets and the free flow of goods and services are essential.
Although Korea has accomplished a great deal of economic and financial
reform over the last several years, more remains to be done. Korea must
continue to reform, restructure, and improve if it is to strengthen its
position in this intensely competitive global economy. President Roh's evolving
hub concept recognizes this, and the U.S. welcomes the new Roh Administration's
pledge to play a larger role in the regional economy while accelerating the
momentum of reform. Such reform will be essential to the success of the hub
concept.
Once Korea's markets and economy are fully opened, I expect our trade to
increase and to be more balanced.
For example, every day Hyundai exports more cars to the U.S. than the U.S. exports to Korea in a year. That should change. Korea's cars no longer need "infant industry" protection and Korea should take further steps, such as tariff cuts, to fully open this market.
In addition to trade, we invest heavily in each other's economies. Last year, the U.S. was the leading foreign investor in Korea. However, the level of foreign direct investment in Korea has been decreasing over the last several years. To stimulate investment, Korea should do more to continue the deregulation process and create a better business environment that foreign investors will find attractive. We find particularly encouraging President Roh's comments about foreign investment during the campaign, including his positive words about the GM purchase of Daewoo Motors.
The United States and Korea remain important trading partners. Last year in
2002, the U.S. Commerce Department figures show that the U.S. had $22 billion in exports to Korea while importing $35 billion of Korean products. If current
trends continue, China may seriously challenge the U.S. position as Korea's largest trade partner. Despite this development, the Korea-U.S. trade relationship
will remain a critical element of our partnership.
Korea remains the sixth-largest market for U.S. exports. It is our
fifth-largest market for high technology products, and the fourth-largest
market for agricultural and food products.
Our bilateral relations have an important personal dimension as well. We are now celebrating the centennial of Korean immigration to the U.S. Whether fourth generation or recent immigrants, Koreans are known for their work ethic, the importance they place on education, and their strong family ties. They have truly enriched us as a nation.
What of the future of relations between Korea and the United States? Although the past year has been a difficult one in some respects, our alliance remains fundamentally strong, and, in the face of new threats from North Korea, is more important than ever.
Perhaps the most important task for us - Koreans and Americans - is to take stock of our partnership in order to ensure that it is perceived as being balanced and fair by both the U.S. and Korea. In doing so, both of us should look squarely to the future and keep in mind that what binds our two nations together are our shared stake and belief in democracy, market economies, and the need to maintain peace despite the challenges we face today.
The U.S.-Korea relationship is evolving, and that is as it should be. The United States is changing, the international environment is changing, and Korea, too, is changing. But as we all face these transformations, and as we look to the future of our relationship, I know that we will continue to find that there is much more that binds us together than there are things that divide us.
While Korea is undergoing a demographic shift, I would suggest that all
Koreans, regardless of their age, have a stake in democracy, peace, and
prosperity, and it is those things that will serve as the glue that keeps our
partnership together and strong. I am confident that the future will find our
relationship - our partnership - on solid ground and fully capable of facing
whatever challenges the future may bring.
Bill, friends, as you know, and as you can tell from my remarks today, I'm an
optimist. I think the long-term trends in our relationship are good. But there
remains much work to be done and I'll need your help as we do it. And as we do
so, you have my commitment to work closely with you, your Board, and your
AMCHAM members to support further market opening by the new Korean Government,
which has just taken office. President Roh has expressed a strong willingness
to work with the U.S. and this offers us a great opportunity to take our
bilateral relationship to the next level. As we do so, I will be constantly
asking for your advice and support. Let me assure you, that you will continue
to have mine. Thank you.